RUNGE RESULT 'DISAPPOINTING'

RUNGE RESULT 'DISAPPOINTING'

RUNGE Limited (RUL) managing director Tony Kinnane (pictured) is forecasting growth for the mining technology company in 2011, following a ‘disappointing’ $2.3 million NPAT result announced today.

“Our result this year is very disappointing,” says Kinnane.

Kinnane cites strong international business activity as key drivers of growth with recent expansion into Mongolia and Russia, but local uncertainty led Runge to restructure staff.

“Some people were let go, there was natural attrition and some were retrenched, people from areas with low level activity to high level activity like Beijing - the other thing we’ve done is pull multi-disciplined teams together from multiple offices,” he says.

“The domestic business has already picked up a bit but I’m not sure how much it’s got in it. I’m not particularly bullish on the global economy either and I think it’s still got another 12 months to sort itself out.

“I think it will take its natural course and sort itself out, but I don’t think there’s going to be any hockey stick uplift.”

He says cost containment will be another focus in FY11 by avoiding wastage in capital expenditure and travel expenses, but he is happy to spend money building relationships in the emerging markets of Asia.

“We have a target market for mines with $100 million revenue plus and for us we’ve probably tapped 18 to 20 per cent at this stage .The Australian market is higher than that, but there’s still opportunities.

“We don’t have a great presence in India at the moment and that’s going very well, and in Vietnam I’m very bullish as well.”

Runge will also be looking for opportunities in Mozambique’s coal industry and the growing resource market in Kazakhstan.

He says profit growth is going to be modest this year.

“Anything significantly greater than is going to be a pleasure – I don’t have the percentages but it’s going to be where it should have been this year, I’d say similar to last year. “

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Fashion retailer Accent Group to cut Glue Store location count in half

Fashion retailer Accent Group to cut Glue Store location count in half

The ASX-listed fashion retailer responsible for such brands as Plat...

Domino's to shutter 100 stores after crusty results

Domino's to shutter 100 stores after crusty results

The board of Domino's Pizza Enterprises (ASX: DMP) waited until...

Accolade Wines owner buys French giant Pernod Ricard’s global wine assets

Accolade Wines owner buys French giant Pernod Ricard’s global wine assets

Australian Wine Holdco, a consortium that owns the country’s ...

Aussie boxing franchise UBX to enter United Arab Emirates

Aussie boxing franchise UBX to enter United Arab Emirates

Brisbane-based boxing franchise UBX has announced its eighth intern...